UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-22777
Eaton Vance Municipal Income 2028 Term Trust
(Exact Name of Registrant as Specified in Charter)
Two
International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two
International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
January 31
Date of
Fiscal Year End
July 31, 2023
Date of Reporting Period
Item 1. Reports to Stockholders
Eaton Vance
Municipal Income 2028 Term Trust (ETX)
Semiannual Report
July 31, 2023
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its
assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of
“commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its
management of other strategies, the Fund's adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.
Fund shares are not insured by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
Semiannual Report July 31, 2023
Eaton Vance
Municipal Income 2028 Term Trust
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Performance
Portfolio Manager(s) Craig R.
Brandon, CFA and Julie Callahan, CFA
| %
Average Annual Total Returns1,2 |
Inception
Date |
Six
Months |
One
Year |
Five
Years |
Since
Inception |
| Fund
at NAV |
03/28/2013
|
0.21%
|
0.03%
|
2.63%
|
4.29%
|
| Fund
at Market Price |
—
|
(2.67)
|
(9.87)
|
1.97
|
3.62
|
|
| Bloomberg
5 Year Municipal Bond Index |
—
|
(0.50)%
|
(0.05)%
|
1.39%
|
1.54%
|
| Bloomberg
7 Year Municipal Bond Index |
—
|
(0.47)
|
0.43
|
1.84
|
2.03
|
| %
Premium/Discount to NAV3 |
|
| As
of period end |
(6.46)%
|
| Distributions
4 |
|
| Total
Distributions per share for the period |
$0.367
|
| Distribution
Rate at NAV |
3.71%
|
| Taxable-Equivalent
Distribution Rate at NAV |
6.26
|
| Distribution
Rate at Market Price |
3.96
|
| Taxable-Equivalent
Distribution Rate at Market Price |
6.69
|
| %
Total Leverage5 |
|
| Residual
Interest Bond (RIB) Financing |
25.42%
|
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results.
Returns are historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s
Dividend Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ from performance at NAV due to
variations in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and
distribution rates, and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for
periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end,
please refer to eatonvance.com.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
| Credit
Quality (% of total investments)1,2 |
Footnotes:
|
1 |
For
purposes of the Fund’s rating restrictions, ratings are based on Moody’s Investors Service, Inc. (“Moody’s”), S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), as applicable. If
securities are rated differently by the ratings agencies, the highest rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit
ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by S&P or Fitch (Baa or
higher by Moody’s) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of
the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. Holdings designated as “Not Rated”
(if any) are not rated by the national ratings agencies stated above. |
|
2 |
The
chart includes the municipal bonds held by a trust that issues residual interest bonds, consistent with the Portfolio of Investments. |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Endnotes and
Additional Disclosures
| 1 |
Bloomberg 5 Year Municipal
Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities ranging from 4-6 years. Bloomberg 7 Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities ranging from 6-8 years.
Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
|
2 |
Performance
results reflect the effects of leverage. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable. |
|
3 |
The shares
of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to
https://funds.eatonvance.com/closed-end-fund-prices.php. |
|
4 |
The
Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be comprised of amounts
characterized for federal income tax purposes as tax-exempt income, qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. For additional information about nondividend
distributions,
please refer to Eaton Vance Closed-End Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the
calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of
Distributions on the Fund’s webpage available at eatonvance.com. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be
affected by numerous factors including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid
by the Fund could change. Taxable-
equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary
depending on your income, exemptions and deductions. Rates do not include local taxes. |
|
5 |
Fund
employs RIB financing. The leverage created by RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls
with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of
Floating Rate Notes outstanding at period end as a percentage of Fund net assets plus Floating Rate Notes. |
| |
Fund profile subject to
change due to active management. |
| |
Important Notice to
Shareholders |
| |
On January 26, 2023, the
Fund’s Board of Trustees voted to exempt, on a going forward basis, all prior and, until further notice, new acquisitions of Fund shares that otherwise might be deemed “Control Share Acquisitions” under the Fund’s By-Laws
from the Control Share Provisions of the Fund’s By-Laws. |
| |
Effective
December 31, 2022, the Fund’s benchmark was changed to the Bloomberg 5 Year Municipal Bond Index because the investment adviser believes it is more closely aligned with the Fund’s investment objective and strategies. |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Portfolio of
Investments (Unaudited)
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Education
— 1.2% |
| Grand
Canyon University, 4.125%, 10/1/24 |
$
|
2,500
|
$
2,366,250 |
Total
Corporate Bonds
(identified cost $2,878,223) |
|
|
$ 2,366,250
|
| Tax-Exempt
Municipal Obligations — 126.9% |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Bond
Bank — 0.6% |
| Rickenbacker
Port Authority, OH, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32 |
$
|
1,130
|
$
1,287,906 |
| |
|
|
$ 1,287,906
|
| Education
— 0.7% |
| Capital
Trust Agency, FL, (Florida Charter Educational Foundation, Inc.), 4.50%, 6/15/28(1) |
$
|
495
|
$
479,611 |
| Capital
Trust Agency, FL, (Liza Jackson Preparatory School, Inc.), 4.00%, 8/1/30 |
|
220
|
217,140
|
| Florida
Higher Educational Facilities Financing Authority, (Jacksonville University), 4.50%, 6/1/33(1) |
|
265
|
256,992
|
| Pinellas
County Educational Facilities Authority, FL, (Pinellas Academy of Math and Science), 4.125%, 12/15/28(1) |
|
445
|
443,856
|
| |
|
|
$ 1,397,599
|
| Electric
Utilities — 1.9% |
| Michigan
Strategic Fund, (DTE Electric Co. Exempt Facilities), (AMT), 3.875% to 6/3/30 (Put Date), 6/1/53 |
$
|
2,000
|
$
1,993,580 |
| West
Virginia Economic Development Authority, (Appalachian Power Co.), 3.75% to 6/1/25 (Put Date), 12/1/42 |
|
2,000
|
1,987,900
|
| |
|
|
$ 3,981,480
|
| Escrowed/Prerefunded
— 15.8% |
| Clovis
Unified School District, CA, (Election of 2012): |
|
|
|
| Prerefunded
to 8/1/24, 0.00%, 8/1/28 |
$
|
1,000
|
$
823,640 |
| Prerefunded
to 8/1/24, 0.00%, 8/1/29 |
|
2,395
|
1,882,135
|
| Prerefunded
to 8/1/24, 0.00%, 8/1/30 |
|
2,575
|
1,927,001
|
| Fresno
Unified School District, CA, (Election of 2010): |
|
|
|
| Prerefunded
to 8/1/24, 0.00%, 8/1/30 |
|
800
|
588,520
|
| Prerefunded
to 8/1/24, 0.00%, 8/1/31 |
|
955
|
668,242 |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Escrowed/Prerefunded
(continued) |
| Illinois
Finance Authority, (Plymouth Place, Inc.), Prerefunded to 5/15/25, 5.00%, 5/15/30 |
$
|
2,750
|
$
2,836,350 |
| Multnomah
County Hospital Facilities Authority, OR, (Mirabella at South Waterfront), Prerefunded to 10/1/24, 5.125%, 10/1/34 |
|
1,500
|
1,532,145
|
| Riverside
County Community College District, CA, (Election of 2004): |
|
|
|
| Prerefunded
to 2/1/25, 0.00%, 8/1/29 |
|
1,500
|
1,173,765
|
| Prerefunded
to 2/1/25, 0.00%, 8/1/30 |
|
1,250
|
929,587
|
| San
Bernardino Community College District, CA, Prerefunded to 8/1/23, 4.00%, 8/1/30(2) |
|
10,000
|
10,000,000
|
| Savannah
Economic Development Authority, GA, (Marshes of Skidaway Island), Escrowed to Maturity, 6.00%, 1/1/24 |
|
85
|
85,875
|
| Scottsdale
Municipal Property Corp., AZ, Excise Tax Revenue: |
|
|
|
| Prerefunded
to 7/1/25, 4.00%, 7/1/30(2) |
|
2,000
|
2,034,900
|
| Prerefunded
to 7/1/25, 4.00%, 7/1/31(2) |
|
5,680
|
5,779,116
|
| Prerefunded
to 7/1/25, 4.00%, 7/1/32(2) |
|
2,120
|
2,156,994
|
| |
|
|
$ 32,418,270
|
| General
Obligations — 24.5% |
| Chicago
Board of Education, IL: |
|
|
|
| 5.00%,
12/1/26 |
$
|
3,000
|
$
3,096,510 |
| 5.00%,
12/1/27 |
|
500
|
519,915
|
| Clackamas
Community College District, OR: |
|
|
|
| 0.00%,
6/15/28 |
|
1,830
|
1,506,035
|
| 0.00%,
6/15/29 |
|
1,000
|
786,300
|
| Detroit,
MI: |
|
|
|
| 5.00%,
4/1/27 |
|
1,700
|
1,752,513
|
| 5.00%,
4/1/29 |
|
1,000
|
1,035,190
|
| Illinois:
|
|
|
|
| 5.00%,
11/1/29 |
|
1,500
|
1,596,150
|
| 5.00%,
5/1/33 |
|
3,200
|
3,229,088
|
| 5.00%,
5/1/39 |
|
1,165
|
1,169,846
|
| Leander
Independent School District, TX, (PSF Guaranteed), 0.00%, 8/15/31 |
|
5,000
|
3,539,250
|
| Pennsylvania,
4.00%, 4/1/29(2) |
|
10,000
|
10,008,400
|
| Puerto
Rico, 5.625%, 7/1/27 |
|
2,000
|
2,104,000
|
| Texas,
(Texas Transportation Commission), 4.00%, 10/1/31(2) |
|
10,000
|
10,033,900
|
| Washington,
4.00%, 7/1/29(2) |
|
10,000
|
10,000,900
|
| |
|
|
$ 50,377,997
|
| Hospital
— 7.7% |
| Bucks
County Industrial Development Authority, PA, (Grand View Hospital), 5.00%, 7/1/29 |
$
|
550
|
$
539,616 |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Portfolio of
Investments (Unaudited) — continued
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Hospital
(continued) |
| California
Health Facilities Financing Authority, (Providence Health & Services), 4.00%, 10/1/28(2) |
$
|
10,000
|
$
10,082,300 |
| Illinois
Finance Authority, (Presence Health Network), 5.00%, 2/15/29 |
|
2,635
|
2,794,339
|
| Southeastern
Ohio Port Authority, (Memorial Health System Obligated Group), 5.50%, 12/1/29 |
|
985
|
972,362
|
| Yavapai
County Industrial Development Authority, AZ, (Yavapai Regional Medical Center), 5.00%, 8/1/28 |
|
1,500
|
1,500,555
|
| |
|
|
$ 15,889,172
|
| Housing
— 1.5% |
| Honolulu
City and County, HI, (Maunakea Tower Apartments), 5.00% to 6/1/26 (Put Date), 6/1/27 |
$
|
1,000
|
$
1,035,800 |
| New
York City Housing Development Corp., NY, 3.70% to 12/30/27 (Put Date), 5/1/63 |
|
2,000
|
1,998,960
|
| |
|
|
$ 3,034,760
|
| Industrial
Development Revenue — 16.6% |
| Boone
County, KY, (Duke Energy Kentucky, Inc.), 3.70%, 8/1/27 |
$
|
750
|
$
736,898 |
| Burke
County Development Authority, GA, (Georgia Power Co.), 3.80% to 5/21/26 (Put Date), 10/1/32 |
|
1,000
|
992,090
|
| Chandler
Industrial Development Authority, AZ, (Intel Corp.), (AMT), 5.00% to 9/1/27 (Put Date), 9/1/52 |
|
2,250
|
2,313,045
|
| Columbia
Industrial Development Board, AL, (Alabama Power Co.), 3.81% to 6/1/28 (Put Date), 12/1/37 |
|
2,000
|
2,000,000
|
| Iowa
Finance Authority, (Iowa Fertilizer Co.), 4.00% to 12/1/32 (Put Date), 12/1/50 |
|
1,000
|
982,370
|
| Louisiana
Public Facilities Authority, (Cleco Power LLC), 4.25%, 12/1/38 |
|
2,395
|
2,309,714
|
| Matagorda
County Navigation District No. 1, TX, (AEP Texas Central Co.): |
|
|
|
| Series
2008-1, 4.00%, 6/1/30 |
|
3,130
|
3,118,638
|
| Series
2008-2, 4.00%, 6/1/30 |
|
3,000
|
2,989,110
|
| Michigan
Strategic Fund, (Graphic Packaging International, LLC), Green Bonds, (AMT), 4.00% to 10/1/26 (Put Date), 10/1/61 |
|
1,500
|
1,492,005
|
| Montgomery
County Industrial Development Authority, PA, (Constellation Energy Generation, LLC), 4.10% to 4/3/28 (Put Date), 4/1/53 |
|
1,000
|
1,018,250
|
| National
Finance Authority, NH, (Covanta), (AMT), 4.00%, 11/1/27(1) |
|
4,500
|
4,334,400
|
| New
Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.625%, 11/15/30 |
|
1,355
|
1,375,013
|
| New
York Transportation Development Corp., (Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment): |
|
|
|
| (AMT),
4.00%, 10/1/30 |
|
3,000
|
2,989,320 |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Industrial
Development Revenue (continued) |
| New
York Transportation Development Corp., (Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment): (continued) |
|
|
|
| (AMT),
5.00%, 1/1/31 |
$
|
1,125
|
$
1,165,736 |
| Ohio
Air Quality Development Authority, (Duke Energy Corp.), 4.00% to 6/1/27 (Put Date), 9/1/30 |
|
1,000
|
991,190
|
| Ohio
Air Quality Development Authority, (Pratt Paper, LLC), (AMT), 3.75%, 1/15/28(1) |
|
700
|
695,604
|
| Public
Finance Authority, WI, (Celanese Corp.), 4.05%, 11/1/30 |
|
3,000
|
2,935,260
|
| Vermont
Economic Development Authority, (Casella Waste Systems, Inc.): |
|
|
|
| (AMT),
4.625% to 4/3/28 (Put Date), 4/1/36(1) |
|
105
|
103,629
|
| (AMT),
5.00% to 6/1/27 (Put Date), 6/1/52(1) |
|
1,500
|
1,505,295
|
| |
|
|
$ 34,047,567
|
| Insured
- Electric Utilities — 2.6% |
| Puerto
Rico Electric Power Authority: |
|
|
|
| (NPFG),
5.25%, 7/1/29 |
$
|
500
|
$
495,370 |
| (NPFG),
5.25%, 7/1/30 |
|
5,000
|
4,950,700
|
| |
|
|
$ 5,446,070
|
| Insured
- General Obligations — 3.3% |
| Chicago
Board of Education, IL, (AGM), 5.00%, 12/1/28 |
$
|
250
|
$
264,458 |
| Grossmont
Union High School District, CA, (Election of 2008), (AGM), 0.00%, 8/1/29 |
|
4,000
|
3,121,560
|
| Luzerne
County, PA, (AGM), 5.00%, 11/15/29 |
|
2,000
|
2,060,620
|
| McHenry
County Community Unit School District No. 12, IL, (AGM), 4.25%, 1/1/29 |
|
1,230
|
1,236,703
|
| |
|
|
$ 6,683,341
|
| Insured
- Lease Revenue/Certificates of Participation — 3.7% |
| New
Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), 0.00%, 12/15/28 |
$
|
9,095
|
$
7,557,763 |
| |
|
|
$ 7,557,763
|
| Insured
- Transportation — 1.1% |
| Foothill/Eastern
Transportation Corridor Agency, CA, (AGM), 5.625%, (0.00% until 1/15/24), 1/15/32 |
$
|
795
|
$
919,998 |
| New
Jersey Economic Development Authority, (The Goethals Bridge Replacement), (AGM), (AMT), 5.00%, 1/1/31 |
|
1,340
|
1,347,303
|
| |
|
|
$ 2,267,301
|
| Insured
- Water and Sewer — 2.7% |
| Jefferson
County, AL, Sewer Revenue: |
|
|
|
| (AGM),
0.00%, 10/1/27 |
$
|
875
|
$
706,484 |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Portfolio of
Investments (Unaudited) — continued
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Insured
- Water and Sewer (continued) |
| Jefferson
County, AL, Sewer Revenue: (continued) |
|
|
|
| (AGM),
0.00%, 10/1/29 |
$
|
1,225
|
$
881,596 |
| (AGM),
0.00%, 10/1/30 |
|
1,045
|
701,090
|
| (AGM),
0.00%, 10/1/33 |
|
5,870
|
3,221,339
|
| |
|
|
$ 5,510,509
|
| Lease
Revenue/Certificates of Participation — 1.5% |
| Michigan
Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/31 |
$
|
1,000
|
$
1,004,780 |
| New
Jersey Economic Development Authority, (Portal North Bridge Project), 5.00%, 11/1/32 |
|
675
|
769,878
|
| Pennsylvania
Economic Development Financing Authority, (Pennsylvania Rapid Bridge Replacement), 5.00%, 12/31/29 |
|
1,375
|
1,413,115
|
| |
|
|
$ 3,187,773
|
| Other
Revenue — 4.9% |
| Black
Belt Energy Gas District, AL, 4.00% to 12/1/26 (Put Date), 10/1/52 |
$
|
1,250
|
$
1,237,750 |
| Buckeye
Tobacco Settlement Financing Authority, OH, 5.00%, 6/1/32 |
|
2,000
|
2,173,160
|
| California
Community Choice Financing Authority, Clean Energy Project Revenue, Green Bonds, 5.00% to 8/1/29 (Put Date), 12/1/53 |
|
1,000
|
1,043,940
|
| Kalispel
Tribe of Indians, WA, Series A, 5.00%, 1/1/32(1) |
|
695
|
714,432
|
| Main
Street Natural Gas, Inc., GA, Gas Supply Revenue: |
|
|
|
| 5.00%
to 6/1/30 (Put Date), 6/1/53 |
|
2,150
|
2,225,207
|
| 5.00%
to 9/1/30 (Put Date), 9/1/53 |
|
2,500
|
2,629,475
|
| |
|
|
$ 10,023,964
|
| Senior
Living/Life Care — 7.2% |
| Buffalo
and Erie County Industrial Land Development Corp., NY, (Orchard Park CCRC, Inc.), 5.00%, 11/15/28 |
$
|
1,360
|
$
1,375,395 |
| Colorado
Health Facilities Authority, (Frasier Meadows Retirement Community), 5.25%, 5/15/28 |
|
250
|
252,283
|
| Franklin
County Industrial Development Authority, PA, (Menno-Haven, Inc.): |
|
|
|
| 5.00%,
12/1/27 |
|
250
|
240,935
|
| 5.00%,
12/1/28 |
|
250
|
238,605
|
| Harris
County Cultural Education Facilities Finance Corp., TX, (Brazos Presbyterian Homes, Inc.), 5.75%, 1/1/28 |
|
140
|
140,048
|
| Lancaster
County Hospital Authority, PA, (Brethren Village), 5.00%, 7/1/30 |
|
1,025
|
983,282
|
| Massachusetts
Development Finance Agency, (Linden Ponds, Inc.), 5.00%, 11/15/28(1) |
|
300
|
309,774 |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Senior
Living/Life Care (continued) |
| Montgomery
County Industrial Development Authority, PA, (Whitemarsh Continuing Care Retirement Community), 4.25%, 1/1/28 |
$
|
2,300
|
$
2,193,763 |
| New
Hope Cultural Education Facilities Finance Corp., TX, (Longhorn Village), 5.00%, 1/1/28 |
|
1,145
|
1,132,462
|
| North
Carolina Medical Care Commission, (Galloway Ridge), 5.00%, 1/1/29 |
|
560
|
555,526
|
| Public
Finance Authority, WI, (Church Home of Hartford, Inc.), 5.00%, 9/1/25(1) |
|
750
|
740,085
|
| Rockville,
MD, (Ingleside at King Farm), 5.00%, 11/1/29 |
|
1,100
|
1,058,783
|
| St.
Louis County Industrial Development Authority, MO, (Friendship Village St. Louis Obligated Group), 5.00%, 9/1/28 |
|
635
|
625,196
|
| Tarrant
County Cultural Education Facilities Finance Corp., TX, (MRC Stevenson Oaks), 6.25%, 11/15/31 |
|
540
|
521,019
|
| Tarrant
County Cultural Education Facilities Finance Corp., TX, (Trinity Terrace), 5.00%, 10/1/29 |
|
1,045
|
1,053,548
|
| Tempe
Industrial Development Authority, AZ, (Mirabella at ASU), 5.50%, 10/1/27(1) |
|
900
|
789,624
|
| Tulsa
County Industrial Authority, OK, (Montereau, Inc.), 5.00%, 11/15/26 |
|
345
|
351,244
|
| Vermont
Economic Development Authority, (Wake Robin Corp.): |
|
|
|
| 5.00%,
5/1/27 |
|
500
|
505,060
|
| 5.00%,
5/1/28 |
|
750
|
756,307
|
| Washington
Housing Finance Commission, (Bayview Manor Homes), 5.00%, 7/1/31(1) |
|
1,000
|
935,870
|
| |
|
|
$ 14,758,809
|
| Special
Tax Revenue — 13.9% |
| Bullhead
City, AZ, Excise Taxes Revenue, 1.30%, 7/1/28 |
$
|
485
|
$
431,771 |
| Lakewood
Ranch Stewardship District, FL, (Villages of Lakewood Ranch), 4.25%, 5/1/26 |
|
680
|
678,844
|
| Metropolitan
Development and Housing Agency, TN, (Fifth + Broadway Development), 4.50%, 6/1/28(1) |
|
595
|
598,653
|
| Metropolitan
Pier and Exposition Authority, IL, (McCormick Place Expansion), 5.00%, 12/15/27 |
|
1,000
|
1,023,920
|
| Michigan
Finance Authority, Detroit Financial Recovery Income Tax Revenue, 4.50%, 10/1/29 |
|
895
|
894,973
|
| New
York Dormitory Authority, Sales Tax Revenue, 4.00%, 3/15/30(2) |
|
10,000
|
10,007,100
|
| New
York State Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/30(2) |
|
12,000
|
12,112,320
|
| Puerto
Rico Sales Tax Financing Corp., 5.00%, 7/1/58 |
|
2,000
|
1,951,520
|
| Sparks,
NV, (Legends at Sparks Marina), 2.75%, 6/15/28(1) |
|
975
|
909,734
|
| |
|
|
$ 28,608,835
|
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Portfolio of
Investments (Unaudited) — continued
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Student
Loan — 1.7% |
| Massachusetts
Educational Financing Authority, (AMT), 5.00%, 1/1/27 |
$
|
3,000
|
$
3,034,650 |
| New
Jersey Higher Education Student Assistance Authority, Series 2015-1A, (AMT), 4.00%, 12/1/28 |
|
450
|
449,204
|
| |
|
|
$ 3,483,854
|
| Transportation
— 12.2% |
| Foothill/Eastern
Transportation Corridor Agency, CA, 5.90%, (0.00% until 1/15/24), 1/15/27 |
$
|
2,000
|
$
2,130,800 |
| Grand
Parkway Transportation Corp., TX: |
|
|
|
| 4.95%,
(0.00% until 10/1/23), 10/1/29 |
|
800
|
869,792
|
| 5.05%,
(0.00% until 10/1/23), 10/1/30 |
|
1,500
|
1,636,365
|
| 5.20%,
(0.00% until 10/1/23), 10/1/31 |
|
2,000
|
2,191,820
|
| Houston,
TX, (United Airlines, Inc.), (AMT), 5.00%, 7/1/29 |
|
1,470
|
1,474,160
|
| Metropolitan
Transportation Authority, NY, 5.00% to 5/15/30 (Put Date), 11/15/45 |
|
2,250
|
2,423,993
|
| Metropolitan
Washington Airports Authority, D.C., (AMT), 5.00%, 10/1/29 |
|
2,000
|
2,172,220
|
| New
York Transportation Development Corp., (Terminal 4 John F. Kennedy International Airport), (AMT), 5.00%, 12/1/29 |
|
2,000
|
2,138,120
|
| Port
Authority of New York and New Jersey, (AMT), 4.00%, 7/15/36(2) |
|
10,000
|
10,000,500
|
| |
|
|
$ 25,037,770
|
| Water
and Sewer — 2.8% |
| Michigan
Finance Authority, (Detroit Water and Sewerage Department), 5.00%, 7/1/30 |
$
|
5,000
|
$
5,050,850 |
| New
Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 3.75% to 6/1/28 (Put Date), 11/1/34 |
|
750
|
746,752
|
| |
|
|
$ 5,797,602
|
Total
Tax-Exempt Municipal Obligations
(identified cost $257,876,776) |
|
|
$260,798,342
|
| Taxable
Municipal Obligations — 5.5% |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| General
Obligations — 2.5% |
| Atlantic
City, NJ, 7.00%, 3/1/28 |
$
|
2,105
|
$ 2,189,600
|
| Chicago,
IL: |
|
|
|
| 7.375%,
1/1/33 |
|
1,000
|
1,058,790 |
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| General
Obligations (continued) |
| Chicago,
IL: (continued) |
|
|
|
| 7.781%,
1/1/35 |
$
|
1,675
|
$
1,823,724 |
| |
|
|
$ 5,072,114
|
| Hospital
— 1.2% |
| California
Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24 |
$
|
2,500
|
$
2,473,275 |
| |
|
|
$ 2,473,275
|
| Insured
- Transportation — 1.8% |
| Alameda
Corridor Transportation Authority, CA, (AMBAC), 0.00%, 10/1/31 |
$
|
5,805
|
$
3,712,994 |
| |
|
|
$ 3,712,994
|
Total
Taxable Municipal Obligations
(identified cost $10,600,430) |
|
|
$ 11,258,383
|
Total
Investments — 133.6%
(identified cost $271,355,429) |
|
|
$274,422,975
|
| Other
Assets, Less Liabilities — (33.6)% |
|
|
$
(68,969,026) |
| Net
Assets — 100.0% |
|
|
$205,453,949
|
| The
percentage shown for each investment category in the Portfolio of Investments is based on net assets. |
|
(1) |
Security
exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At July 31, 2023,
the aggregate value of these securities is $12,817,557 or 6.2% of the Trust's net assets. |
|
(2) |
Security
represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G). |
| At
July 31, 2023, the concentration of the Trust’s investments in the various states and territories, determined as a percentage of total investments, is as follows: |
| New
York |
16.1%
|
| California
|
15.1%
|
| Texas
|
10.5%
|
| Others,
representing less than 10% individually |
57.4%
|
| The
Trust invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. At July 31, 2023,
11.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency
ranged from 2.0% to 5.3% of total investments. |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Portfolio of
Investments (Unaudited) — continued
| Abbreviations:
|
| AGM
|
– Assured
Guaranty Municipal Corp. |
| AMBAC
|
– AMBAC
Financial Group, Inc. |
| AMT
|
– Interest
earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. |
| NPFG
|
– National
Public Finance Guarantee Corp. |
| PSF
|
– Permanent
School Fund |
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Statement of Assets
and Liabilities (Unaudited)
| |
July
31, 2023 |
| Assets
|
|
| Investments,
at value (identified cost $271,355,429) |
$
274,422,975 |
| Interest
receivable |
2,344,624
|
| Receivable
for investments sold |
612,699
|
| Total
assets |
$277,380,298
|
| Liabilities
|
|
| Payable
for floating rate notes issued |
$
70,024,305 |
| Payable
for when-issued/delayed delivery securities |
523,775
|
| Due
to custodian |
367,841
|
| Payable
to affiliates: |
|
| Investment adviser and administration fee
|
141,049
|
| Interest
expense and fees payable |
758,889
|
| Accrued
expenses |
110,490
|
| Total
liabilities |
$
71,926,349 |
| Net
Assets |
$205,453,949
|
| Sources
of Net Assets |
|
| Common
shares, $0.01 par value, unlimited number of shares authorized |
$
108,850 |
| Additional
paid-in capital |
207,837,559
|
| Accumulated
loss |
(2,492,460)
|
| Net
Assets |
$205,453,949
|
| Common
Shares Issued and Outstanding |
10,884,956
|
| Net
Asset Value Per Common Share |
|
| Net
assets ÷ common shares issued and outstanding |
$
18.88 |
10
See Notes to Financial Statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Statement of
Operations (Unaudited)
| |
Six
Months Ended |
| |
July
31, 2023 |
| Investment
Income |
|
| Interest
income |
$
6,050,082 |
| Total
investment income |
$
6,050,082 |
| Expenses
|
|
| Investment
adviser and administration fee |
$
886,750 |
| Trustees’
fees and expenses |
9,204
|
| Custodian
fee |
25,607
|
| Transfer
and dividend disbursing agent fees |
9,879
|
| Legal
and accounting services |
24,949
|
| Printing
and postage |
18,307
|
| Interest
expense and fees |
1,704,364
|
| Miscellaneous
|
30,971
|
| Total
expenses |
$
2,710,031 |
| Net
investment income |
$
3,340,051 |
| Realized
and Unrealized Gain (Loss) |
|
| Net
realized gain (loss): |
|
| Investment
transactions |
$
(46,897) |
| Net
realized loss |
$
(46,897) |
| Change
in unrealized appreciation (depreciation): |
|
| Investments
|
$
(3,188,926) |
| Net
change in unrealized appreciation (depreciation) |
$(3,188,926)
|
| Net
realized and unrealized loss |
$(3,235,823)
|
| Net
increase in net assets from operations |
$
104,228 |
11
See Notes to Financial Statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Statements of Changes
in Net Assets
| |
Six
Months Ended
July 31, 2023
(Unaudited) |
Year
Ended
January 31, 2023 |
| Increase
(Decrease) in Net Assets |
|
|
| From
operations: |
|
|
| Net
investment income |
$
3,340,051 |
$
8,026,340 |
| Net
realized loss |
(46,897)
|
(1,462,236)
|
| Net
change in unrealized appreciation (depreciation) |
(3,188,926)
|
(14,951,568)
|
| Net
increase (decrease) in net assets from operations |
$
104,228 |
$
(8,387,464) |
| Distributions
to shareholders |
$
(3,992,602) |
$
(8,854,966) |
| Capital
share transactions: |
|
|
| Reinvestment
of distributions |
$
— |
$
297,741 |
| Net
increase in net assets from capital share transactions |
$
— |
$
297,741 |
| Net
decrease in net assets |
$
(3,888,374) |
$
(16,944,689) |
| Net
Assets |
|
|
| At
beginning of period |
$
209,342,323 |
$
226,287,012 |
| At
end of period |
$205,453,949
|
$209,342,323
|
12
See Notes to Financial Statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Statement of Cash
Flows (Unaudited)
| |
Six
Months Ended |
| |
July
31, 2023 |
| Cash
Flows From Operating Activities |
|
| Net
increase in net assets from operations |
$
104,228 |
| Adjustments
to reconcile net increase in net assets from operations to net cash provided by operating activities: |
|
| Investments
purchased |
(33,889,811)
|
| Investments
sold |
66,334,009
|
| Net
amortization/accretion of premium (discount) |
(483,781)
|
| Decrease
in interest receivable |
162,752
|
| Decrease
in payable to affiliate for investment adviser and administration fee |
(16,787)
|
| Decrease
in interest expense and fees payable |
(6,793)
|
| Decrease
in accrued expenses |
(25,450)
|
| Net
change in unrealized appreciation (depreciation) from investments |
3,188,926
|
| Net
realized loss from investments |
46,897
|
| Net
cash provided by operating activities |
$
35,414,190 |
| Cash
Flows From Financing Activities |
|
| Cash
distributions paid |
$
(3,992,602) |
| Repayment
of secured borrowings |
(31,415,000)
|
| Decrease
in due to custodian |
(6,588)
|
| Net
cash used in financing activities |
$(35,414,190)
|
| Net
increase in cash |
$
— |
| Cash
at beginning of period |
$
— |
| Cash
at end of period |
$
— |
| Supplemental
disclosure of cash flow information: |
|
| Cash
paid for interest and fees on borrowings |
$
1,711,157 |
13
See Notes to Financial Statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
| |
Six
Months Ended
July 31, 2023
(Unaudited) |
Year
Ended January 31, |
| |
2023
|
2022
|
2021
|
2020
|
2019
|
| Net
asset value — Beginning of period |
$
19.230 |
$
20.820 |
$
21.960 |
$
21.880 |
$
20.440 |
$
20.440 |
| Income
(Loss) From Operations |
|
|
|
|
|
|
| Net
investment income(1) |
$
0.307 |
$
0.738 |
$
0.870 |
$
0.876 |
$
0.763 |
$
0.775 |
| Net
realized and unrealized gain (loss) |
(0.290)
|
(1.514)
|
(1.159)
|
0.048
|
1.528
|
0.076
|
| Total
income (loss) from operations |
$
0.017 |
$
(0.776) |
$
(0.289) |
$
0.924 |
$
2.291 |
$
0.851 |
| Less
Distributions |
|
|
|
|
|
|
| From
net investment income |
$
(0.367)* |
$
(0.814) |
$
(0.851) |
$
(0.844) |
$
(0.851) |
$
(0.851) |
| Total
distributions |
$
(0.367) |
$
(0.814) |
$
(0.851) |
$
(0.844) |
$
(0.851) |
$
(0.851) |
| Net
asset value — End of period |
$
18.880 |
$
19.230 |
$
20.820 |
$
21.960 |
$
21.880 |
$
20.440 |
| Market
value — End of period |
$
17.660 |
$
18.520 |
$
20.510 |
$
22.950 |
$
21.370 |
$
19.590 |
| Total
Investment Return on Net Asset Value(2) |
0.21%
(3) |
(3.66)%
|
(1.39)%
|
4.45%
|
11.46%
|
4.46%
|
| Total
Investment Return on Market Value(2) |
(2.67)%
(3) |
(5.82)%
|
(7.03)%
|
11.74%
|
13.58%
|
3.93%
|
| Ratios/Supplemental
Data |
|
|
|
|
|
|
| Net
assets, end of period (000’s omitted) |
$205,454
|
$209,342
|
$226,287
|
$238,364
|
$237,212
|
$221,444
|
| Ratios
(as a percentage of average daily net assets): |
|
|
|
|
|
|
| Expenses excluding interest and fees
|
0.99%
(4) |
1.04%
|
1.03%
|
1.04%
|
1.04%
|
1.08%
|
| Interest
and fee expense(5) |
1.66%
(4) |
1.06%
|
0.33%
|
0.63%
|
1.16%
|
1.22%
|
| Total
expenses |
2.65%
(4) |
2.10%
|
1.36%
|
1.67%
|
2.20%
|
2.30%
|
| Net
investment income |
3.26%
(4) |
3.79%
|
4.02%
|
4.10%
|
3.58%
|
3.84%
|
| Portfolio
Turnover |
11%
(3) |
16%
|
2%
|
3%
|
1%
|
10%
|
|
(1) |
Computed
using average shares outstanding. |
|
(2) |
Returns
are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trust’s dividend reinvestment
plan. |
|
(3) |
Not
annualized. |
|
(4) |
Annualized.
|
|
(5) |
Interest
and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G). |
| *
|
A
portion of the distributions may be deemed a tax return of capital at year-end. See Note 2. |
14
See Notes to Financial Statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Notes to Financial
Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance Municipal Income 2028 Term Trust (the Trust) is a
Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Trust's investment objective is to provide current income exempt from
regular federal income tax. The Trust has a term of fifteen years and currently intends to cease its investment operations on or about June 30, 2028 (the "Termination Date") and thereafter liquidate and distribute its net assets to holders of the
Trust’s common shares. The Trust’s term may be extended for a period of not more than 12 months from the Termination Date by a vote of the Trust’s Board of Trustees, if the Board determines it is in the best interest of the common
shareholders to do so. The Trust’s term may not be extended further than a 12 month period without a common shareholder
vote.
The following is a summary of significant accounting policies
of the Trust. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Trust is an investment company and follows accounting and reporting guidance in the Financial
Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment
Valuation—The following methodologies are used to determine the market value or fair value of
investments.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to,
reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as
industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term debt obligations purchased with a
remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Fair Valuation. In
connection with Rule 2a-5 of the 1940 Act, the Trustees have designated the Trust’s investment adviser as its valuation designee. Investments for which valuations or market quotations are not readily available or are deemed unreliable are
valued by the investment adviser, as valuation designee, at fair value using methods that most fairly reflect the security’s “fair value”, which is the amount that the Trust might reasonably expect to receive for the security upon
its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security,
the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from
broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an
evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income—Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized
gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal
Taxes—The Trust’s policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no
provision for federal income or excise tax is necessary. The Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which
are exempt from regular federal income tax when received by the Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to
shareholders.
As of July 31, 2023, the Trust had
no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Trust files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal
Revenue Service for a period of three years from the date of filing.
D Legal Fees—Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected
to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
E Use of
Estimates—The preparation of the financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those
estimates.
F Indemnifications—Under the Trust’s organizational documents, its officers and Trustees may be indemnified against
certain liabilities and expenses arising out of the performance of their duties to the Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal
liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume, upon request by the
shareholder, the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Notes to Financial
Statements (Unaudited) — continued
liable solely by
reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Trust enters into agreements with service providers that may contain indemnification clauses.
The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
G Floating Rate Notes Issued in Conjunction with
Securities Held—The Trust may invest in residual interest bonds, also referred to as inverse
floating rate securities, whereby the Trust may sell a variable or fixed rate bond for cash to a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), while at the same time, buying a residual interest in the assets and
cash flows of the SPV. The bond is deposited into the SPV with the same CUSIP number as the bond sold to the SPV by the Trust, and which may have been, but is not required to be, the bond purchased from the Trust (the Bond). The SPV also issues
floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by the Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at
par, and (2) to have the Bond held by the SPV transferred to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would generally pay the SPV the par amount due on the Floating Rate Notes and exchange the residual
interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trust accounts for the transaction described above as a
secured borrowing by including the Bond in its Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in its Statement of Assets and Liabilities. The Floating Rate
Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the SPV for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates
its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 6) at July 31, 2023. Interest expense related to the Trust's liability with respect to
Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying
Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity
agreement under which liquidity support is provided for the Floating Rate Notes up to one year. At July 31, 2023, the amount of the Trust’s Floating Rate Notes outstanding and the related collateral were $70,024,305 and $92,216,430,
respectively. The range of interest rates on the Floating Rate Notes outstanding at July 31, 2023 was 4.01% - 4.08%. For the six months ended July 31, 2023, the Trust’s average settled Floating Rate Notes outstanding and the average interest
rate (annualized) including fees were $89,831,575 and 3.83%, respectively.
In certain circumstances, the Trust may enter into shortfall
and forbearance agreements with brokers by which the Trust agrees to reimburse the broker for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in
interest cash flows. The Trust had no shortfalls as of July 31, 2023.
The Trust may also purchase residual interest bonds in a
secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market
transaction are disclosed in the Portfolio of Investments.
The Trust’s investment policies and restrictions
expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the
market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile
than that of a fixed rate bond. The Trust’s investment policies do not allow the Trust to borrow money except as permitted by the 1940 Act. Effective August 19, 2022, the Trust began operating under Rule 18f-4 under the 1940 Act, which, among
other things, governs the use of derivative investments and certain financing transactions by registered investment companies. As of the date of this report, consistent with Rule 18f-4, the Trust has elected to comply with the asset coverage
requirements of Section 18 with respect to its investments in residual interest bonds (as opposed to treating such interests as derivatives transactions). The Trust may change this election (and elect to treat these investments and other similar
financing transactions as derivatives transactions) at any time. Residual interest bonds held by the Trust are securities exempt from registration under Rule 144A of the Securities Act of 1933.
H When-Issued Securities and Delayed Delivery
Transactions—The Trust may purchase securities on a delayed delivery or when-issued basis. Payment and
delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trust maintains cash and/or security positions for these
commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Such
security purchases are subject to the risk that when delivered they will be worth less than the agreed upon payment price. Losses may also arise if the counterparty does not perform under the contract.
I Interim Financial Statements—The interim financial statements relating to July 31, 2023 and for the six months then ended have not been
audited by an independent registered public accounting firm, but in the opinion of the Trust’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial
statements.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Notes to Financial
Statements (Unaudited) — continued
2 Distributions to Shareholders and Income Tax
Information
The Trust intends to make monthly
distributions of net investment income to common shareholders. In addition, at least annually, the Trust intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date.
Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial
statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary
income.
Distributions in any year may include a return of capital
component. For the six months ended July 31, 2023, the amount of distributions estimated to be a tax return of capital was approximately $525,000. The final determination of tax characteristics of the Trust's distributions will occur at the end of
the year, at which time it will be reported to the shareholders.
At January 31, 2023, the Trust, for federal income tax
purposes, had deferred capital losses of $5,642,416 which would reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus would reduce the
amount of distributions to shareholders, which would otherwise be necessary to relieve the Trust of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Trust’s next taxable
year and retain the same short-term or long-term character as when originally deferred. Of the deferred capital losses at January 31, 2023, $5,642,416 are short-term.
The cost and unrealized appreciation (depreciation) of
investments of the Trust at July 31, 2023, as determined on a federal income tax basis, were as follows:
| Aggregate
cost |
$200,889,401
|
| Gross
unrealized appreciation |
$
5,253,822 |
| Gross
unrealized depreciation |
(1,744,553)
|
| Net
unrealized appreciation |
$
3,509,269 |
3 Investment Adviser and Administration Fee and
Other Transactions with Affiliates
The investment adviser
and administration fee is earned by Eaton Vance Management (EVM), an indirect, wholly-owned subsidiary of Morgan Stanley, as compensation for investment advisory and administrative services rendered to the Trust. The fee is computed at an annual
rate of 0.60% of the Trust’s average daily total managed assets and is payable monthly. For purposes of this calculation, total managed assets means total assets of the Trust, including any form of investment leverage, minus all accrued
expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit
facility or the issuance of debt securities or through the purchase of residual interest bonds), (ii) the issuance of preferred stock or other similar preference securities, (iii) the reinvestment of collateral received for securities loaned in
accordance with the Trust’s investment objectives and policies, and/or (iv) any other means, all as determined in accordance with generally accepted accounting principles. Accrued expenses includes other liabilities other than indebtedness
attributable to leverage. For the six months ended July 31, 2023, the investment adviser and administration fee was $886,750.
Trustees and officers of the Trust who are members of
EVM’s organization receive remuneration for their services to the Trust out of the investment adviser and administration fee. Trustees of the Trust who are not affiliated with EVM may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended July 31, 2023, no significant amounts have been deferred. Certain officers and Trustees of the Trust are officers of EVM.
4 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term
obligations and including maturities, aggregated $32,675,905 and $66,646,708, respectively, for the six months ended July 31, 2023.
5 Common Shares of Beneficial Interest
The Trust may issue common shares pursuant to its dividend
reinvestment plan. There were no common shares issued by the Trust during the six months ended July 31, 2023. Common shares issued by the Trust pursuant to its dividend reinvestment plan for the year ended January 31, 2023 were 15,208.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Notes to Financial
Statements (Unaudited) — continued
In
November 2013, the Board of Trustees initially approved a share repurchase program for the Trust. Pursuant to the reauthorization of the share repurchase program by the Board of Trustees in March 2019, the Trust is authorized to repurchase up to 10%
of its common shares outstanding as of the last day of the prior calendar year at market prices when shares are trading at a discount to net asset value. The share repurchase program does not obligate the Trust to purchase a specific amount of
shares. There were no repurchases of common shares by the Trust for the six months ended July 31, 2023 and the year ended January 31, 2023.
6 Fair Value Measurements
Under generally accepted accounting principles for fair value
measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| •
|
Level 1 – quoted prices
in active markets for identical investments |
| •
|
Level 2 – other
significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| •
|
Level 3
– significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in
different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
At July 31, 2023, the hierarchy of inputs used in valuing the
Trust's investments, which are carried at value, were as follows:
| Asset
Description |
Level
1 |
Level
2 |
Level
3 |
Total
|
| Corporate
Bonds |
$
— |
$
2,366,250 |
$
— |
$
2,366,250 |
| Tax-Exempt
Municipal Obligations |
—
|
260,798,342
|
—
|
260,798,342
|
| Taxable
Municipal Obligations |
—
|
11,258,383
|
—
|
11,258,383
|
| Total
Investments |
$ —
|
$274,422,975
|
$ —
|
$274,422,975
|
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Board of
Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940
Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect from year-to-year only if its continuation is approved on an annual basis by a vote of the fund’s
board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting held on June 8, 2023, the Boards of
Trustees/Directors (collectively, the “Board”) that oversee the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a
majority of the independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory agreements and sub-advisory
agreements1 for each of the Eaton Vance Funds for an additional one-year period. The Board relied upon the affirmative recommendation of its Contract Review
Committee, which is a committee exclusively comprised of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by the adviser and sub-adviser to each of the Eaton Vance Funds
(including information specifically requested by the Board) for a series of formal meetings held between April and June 2023, as well as certain additional information provided in response to specific requests from the Independent Trustees as
members of the Contract Review Committee. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent such information was relevant to the Contract Review
Committee’s annual evaluation of the investment advisory agreements and sub-advisory agreements.
In connection with its evaluation of the investment advisory
agreements and sub-advisory agreements, the Board considered various information relating to the Eaton Vance Funds. This included information applicable to all or groups of Eaton Vance Funds, which is referenced immediately below, and information
applicable to the particular Eaton Vance Fund covered by this report (each “Eaton Vance Fund” is referred to below as a “fund”). (For funds that invest through one or more underlying portfolios, references to “each
fund” in this section may include information that was considered at the portfolio-level.)
Information about Fees, Performance and Expenses
• A report from an independent
data provider comparing advisory and other fees paid by each fund to such fees paid by comparable funds, as identified by the independent data provider (“comparable funds”);
• A report from an independent
data provider comparing each fund’s total expense ratio (and its components) to those of comparable funds;
• A report from an independent
data provider comparing the investment performance of each fund (including, as relevant, total return data, income data, Sharpe ratios and information ratios) to the investment performance of comparable funds and, as applicable, benchmark indices,
over various time periods;
• In certain instances, data
regarding investment performance relative to customized groups of peer funds and blended indices identified by the adviser in consultation with the Portfolio Management Committee of the Board (a committee exclusively comprised of Independent
Trustees);
• Comparative
information concerning the fees charged and services provided by the adviser and sub-adviser to each fund in managing other accounts (which may include other mutual funds, collective investment funds and institutional accounts) using investment
strategies and techniques similar to those used in managing such fund(s), if any;
• Profitability analyses with
respect to the adviser and sub-adviser to each of the funds;
Information about Portfolio Management and Trading
• Descriptions of the investment
management services provided to each fund, as well as each of the funds’ investment strategies and policies;
• The procedures and processes
used to determine the value of fund assets, including, when necessary, the determination of “fair value” and actions taken to monitor and test the effectiveness of such procedures and processes;
• Information about the policies
and practices of each fund’s adviser and sub-adviser with respect to trading, including their processes for seeking best execution of portfolio transactions;
• Information about the
allocation of brokerage transactions and the benefits, if any, received by the adviser and sub-adviser to each fund as a result of brokerage allocation, including, as applicable, information concerning the acquisition of research through client
commission arrangements and policies with respect to “soft dollars”;
• Data relating to the portfolio
turnover rate of each fund and related information regarding active management in the context of particular strategies;
Information about each Adviser and Sub-adviser
• Reports detailing the
financial results and condition of the adviser and sub-adviser to each fund;
• Information regarding the
individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities
with respect to managing other mutual funds and investment accounts, as applicable;
1 Not all Eaton Vance Funds have entered into a sub-advisory agreement with a sub-adviser. Accordingly,
references to “sub-adviser” or “sub-advisory agreement” in this “Overview” section may not be applicable to the particular Eaton Vance Fund covered by this report.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Board of
Trustees’ Contract Approval — continued
• Information regarding the
adviser’s and its parent company’s (Morgan Stanley’s) efforts to retain and attract talented investment professionals, including in the context of a competitive marketplace for talent, as well as the ongoing unique environment
presented by hybrid, remote and other alternative work arrangements;
• Information regarding the
adviser’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage;
• The Code of Ethics of the
adviser and its affiliates and the sub-adviser of each fund, together with information relating to compliance with, and the administration of, such codes;
• Policies and procedures
relating to proxy voting, including regular reporting with respect to fund proxy voting activities;
• Information regarding the
handling of corporate actions and class actions, as well as information regarding litigation and other regulatory matters;
• Information concerning the
resources devoted to compliance efforts undertaken by the adviser and its affiliates and the sub-adviser of each fund, if any, including descriptions of their various compliance programs and their record of compliance;
• Information concerning the
business continuity and disaster recovery plans of the adviser and its affiliates and the sub-adviser of each fund, if any;
• A description of Eaton Vance
Management’s and Boston Management and Research’s oversight of sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters;
Other Relevant Information
• Information regarding
ongoing initiatives to further integrate and harmonize, where applicable, the investment management and other departments of the adviser and its affiliates with the overall investment management infrastructure of Morgan Stanley, in light of Morgan
Stanley’s acquisition of Eaton Vance Corp. on March 1, 2021;
• Information concerning the
nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance Management and its affiliates;
• Information concerning
oversight of the relationship with the custodian, subcustodians, fund accountants, and other third-party service providers by the adviser and/or administrator to each of the funds;
• Information concerning efforts
to implement policies and procedures with respect to various recently adopted regulations applicable to the funds, including Rule 12d1-4 (the Fund-of-Funds Rule), Rule 18f-4 (the Derivatives Rule) and Rule 2a-5 (the Fair Valuation Rule);
• For an Eaton Vance Fund
structured as an exchange-listed closed-end fund, information concerning the benefits of the closed-end fund structure, as well as, where relevant, the closed-end fund’s market prices (including as compared to the closed-end fund’s net
asset value (NAV)), trading volume data, continued use of auction preferred shares (where applicable), distribution rates and other relevant matters;
• The risks which the adviser
and/or its affiliates incur in connection with the management and operation of the funds, including, among others, litigation, regulatory, entrepreneurial, and other business risks (and the associated costs of such risks); and
• The terms of each investment
advisory agreement and sub-advisory agreement.
During the
various meetings of the Board and its committees over the course of the year leading up to the June 8, 2023 meeting, the Board received information from portfolio managers and other investment professionals of the advisers and sub-advisers of the
funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Board also received information regarding risk management techniques employed
in connection with the management of the funds. The Board and its committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and
participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fund sub-advisers, with respect to such matters. In addition to the formal meetings of the Board and its committees, the Independent
Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory agreements and sub-advisory agreements.
The Contract Review Committee was advised throughout the
contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the material
factors to be considered in evaluating each investment advisory agreement and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory agreement and sub-advisory
agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with
respect to each investment advisory agreement and sub-advisory agreement. In evaluating each investment advisory agreement and sub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the
Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser and sub-adviser to each of the Eaton Vance Funds.
Results of the Contract Review Process
Based on its consideration of the foregoing, and such other
information it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory and administrative agreement between Eaton Vance Municipal Income 2028
Term Trust (the “Fund”) and Eaton Vance Management (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, recommended to the Board approval of the agreement. Based on the
recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory and administrative agreement for the Fund.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Board of
Trustees’ Contract Approval — continued
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory and
administrative agreement for the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.
The Board considered the Adviser’s management
capabilities and investment processes in light of the types of investments held by the Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and
similar services to the Fund. In particular, the Board considered, where relevant, the abilities and experience of the Adviser’s investment professionals in analyzing factors such as credit risk, tax efficiency, and special considerations
relevant to investing in municipal bonds. The Board considered the Adviser’s municipal bond team, which includes investment professionals and credit specialists who provide services to the Fund. The Board also considered information regarding
the management of the Fund’s portfolio in the context of the target term structure and noted the Adviser’s experience with this structure. The Board also took into account the resources dedicated to portfolio management and other
services, the compensation methods of the Adviser and other factors, including the reputation and resources of the Adviser to recruit and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board
considered the time and attention devoted to the Eaton Vance Funds, including the Fund, by senior management, as well as the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of
the Fund, including the provision of administrative services. The Board also considered the business-related and other risks to which the Adviser or its affiliates may be subject in managing the Fund. The Board considered the deep experience of the
Adviser and its affiliates with managing and operating funds organized as exchange-listed closed-end funds, such as the Fund. In this regard, the Board considered, among other things, the Adviser’s and its affiliates’ experience with
implementing leverage arrangements, monitoring and assessing trading price discounts and premiums and adhering to the requirements of securities exchanges.
The Board considered the compliance programs of the Adviser and
relevant affiliates thereof. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, portfolio valuation, business continuity and the
allocation of investment opportunities. The Board also considered the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry
Regulatory Authority.
The Board considered other
administrative services provided or overseen by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large fund
complex offering exposure to a variety of asset classes and investment disciplines.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory and administrative agreement.
Fund Performance
The Board compared the Fund’s investment performance to
that of comparable funds identified by an independent data provider (the peer group), as well as an appropriate benchmark index, and assessed the Fund’s performance on the basis of total return and current income return. The Board’s
review included comparative performance data with respect to the Fund for the one-, three- and five-year periods ended December 31, 2022. In this regard, the Board noted that the performance of the Fund was higher than the median performance of the
Fund’s peer group for the three-year period. The Board also noted that the performance of the Fund was higher than its benchmark index for the three-year period. The Board considered, among other things, the Adviser’s efforts to generate
competitive levels of tax exempt current income through investments that, relative to its comparable funds, focus on higher quality municipal bonds with longer maturities. The Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board considered contractual fee rates payable by the Fund
for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the one-year period ended December 31,
2022, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered factors that had an impact on the Fund’s total expense ratio relative to
comparable funds.
After considering the foregoing
information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability and “Fall-Out” Benefits
The Board considered the level of profits realized by the
Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to marketing support or other
payments by the Adviser and its affiliates to third parties in respect of distribution or other services.
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are deemed not to be excessive.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
Board of
Trustees’ Contract Approval — continued
The
Board also considered direct or indirect fall-out benefits received by the Adviser and its affiliates in connection with their respective relationships with the Fund, including the benefits of research services that may be available to the Adviser
as a result of securities transactions effected for the Fund and other investment advisory clients.
Economies of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all
Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon
the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also considered the fact that the Fund is not continuously offered and that the
Fund’s assets are not expected to increase materially in the foreseeable future. Accordingly, the Board did not find that the implementation of breakpoints in the advisory fee schedule is warranted at this time.
Eaton Vance
Municipal Income 2028 Term Trust
July 31, 2023
| Officers
|
Eric
A. Stein
President |
Nicholas
S. Di Lorenzo
Secretary |
Deidre
E. Walsh
Vice President and Chief Legal Officer |
Richard F.
Froio
Chief Compliance Officer |
James
F. Kirchner
Treasurer |
|
George
J. Gorman
Chairperson |
|
| Alan
C. Bowser(1) |
|
| Mark
R. Fetting |
|
| Cynthia
E. Frost |
|
| Valerie
A. Mosley |
|
| Anchal
Pachnanda*(2) |
|
| Keith
Quinton |
|
| Marcus
L. Smith |
|
| Susan
J. Sutherland |
|
| Scott
E. Wennerholm |
|
| Nancy
A. Wiser |
|
| *
|
Interested
Trustee |
|
(1) |
Mr.
Bowser began serving as Trustee effective January 4, 2023. |
|
(2) |
Ms.
Pachnanda began serving as Trustee effective April 1, 2023. |
| Privacy
Notice |
April 2021
|
| FACTS
|
WHAT
DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION? |
| Why?
|
Financial
companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read
this notice carefully to understand what we do. |
| |
|
| What?
|
The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income
■ investment
experience and risk tolerance
■ checking account number and wire transfer instructions |
| |
|
| How?
|
All
financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance
chooses to share; and whether you can limit this sharing. |
Reasons
we can share your
personal information |
Does
Eaton Vance
share? |
Can
you limit
this sharing? |
| For
our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes
|
No
|
| For
our marketing purposes — to offer our products and services to you |
Yes
|
No
|
| For
joint marketing with other financial companies |
No
|
We
don’t share |
| For
our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness |
Yes
|
Yes
|
| For
our affiliates’ everyday business purposes — information about your transactions and experiences |
Yes
|
No
|
| For
our affiliates’ everyday business purposes — information about your creditworthiness |
No
|
We
don’t share |
| For
our investment management affiliates to market to you |
Yes
|
Yes
|
| For
our affiliates to market to you |
No
|
We
don’t share |
| For
nonaffiliates to market to you |
No
|
We
don’t share |
To
limit our
sharing |
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer,
we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact
us at any time to limit our sharing. |
| Questions?
|
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
| Privacy
Notice — continued |
April 2021
|
| Who
we are |
| Who
is providing this notice? |
Eaton
Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate
Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
|
| What
we do |
How
does Eaton Vance
protect my personal
information? |
To
protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of
customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How
does Eaton Vance
collect my personal
information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account
■ buy securities from us or make a wire transfer
■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why
can’t I limit all sharing? |
Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness
■ affiliates from using your information
to market to you
■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.
|
| Definitions
|
Investment
Management
Affiliates |
Eaton
Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth
Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Affiliates
|
Companies
related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial
companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Nonaffiliates
|
Companies
not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to
you. |
| Joint
marketing |
A
formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market.
|
| Other
important information |
| Vermont:
Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such
information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing
such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Equiniti Trust Company, LLC (“EQ”), the closed-end funds transfer agent, or your financial intermediary, may household the mailing of your documents
indefinitely unless you instruct EQ, or your financial intermediary, otherwise.If you would prefer that your Eaton Vance documents not be householded, please contact EQ or your financial
intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by EQ or your financial intermediary.
Portfolio
Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the
SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy
Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or
Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
Share Repurchase
Program. The Fund’s Board of Trustees has approved a share repurchase program authorizing the Fund to repurchase up to 10% of its common shares
outstanding as of the last day of the prior calendar year in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Fund to purchase a specific amount of shares. The Fund’s repurchase activity,
including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Fund’s annual and semi-annual reports to shareholders.
Additional Notice to Shareholders. If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or
rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly
after the end of each month. Other information about the funds is available on the website. The funds’ net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted
to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under “Closed-End Funds & Term Trusts.”
This Page Intentionally Left
Blank
This Page Intentionally Left
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Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
Equiniti Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Fund Offices
Two International Place
Boston, MA 02110
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee
Financial Expert
Not required in this filing.
Item 4. Principal Accountant Fees and Services
Not
required in this filing.
Item 5. Audit Committee of Listed Registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
Not required in this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of
Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this
period.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the
registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to
the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b)
There have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal
control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies
No activity to report for the registrant’s most recent fiscal year end.
Item 13. Exhibits
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
| Eaton Vance Municipal Income 2028 Term Trust |
|
|
| By: |
|
/s/ Eric A. Stein |
|
|
Eric A. Stein |
|
|
President |
|
|
| Date: |
|
September 25, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has
been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
| By: |
|
/s/ James F. Kirchner |
|
|
James F. Kirchner |
|
|
Treasurer |
|
|
| Date: |
|
September 25, 2023 |
|
|
| By: |
|
/s/ Eric A. Stein |
|
|
Eric A. Stein |
|
|
President |
|
|
| Date: |
|
September 25, 2023 |
Eaton Vance Municipal Income 2028 Term Trust
FORM N-CSR
Exhibit 13(a)(2)(i)
CERTIFICATION
I, James F. Kirchner, certify that:
1. I have
reviewed this report on Form N-CSR of Eaton Vance Municipal Income 2028 Term Trust;
2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under
the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s
internal control over financial reporting.
|
|
|
|
|
|
|
|
|
| Date: September 25, 2023 |
|
|
|
|
|
/s/ James F. Kirchner |
|
|
|
|
|
|
James F. Kirchner |
|
|
|
|
|
|
Treasurer |
Eaton Vance Municipal Income 2028 Term Trust
FORM N-CSR
Exhibit 13(a)(2)(ii)
CERTIFICATION
I, Eric A. Stein, certify that:
1. I have reviewed this report
on Form N-CSR of Eaton Vance Municipal Income 2028 Term Trust;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s
internal control over financial reporting.
|
|
|
|
|
|
|
| Date: September 25, 2023 |
|
|
|
|
|
/s/ Eric A. Stein |
|
|
|
|
|
|
Eric A. Stein |
|
|
|
|
|
|
President |
Form N-CSR Item 13(b) Exhibit
CERTIFICATION PURSUANT TO
18
U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned hereby certify in their capacity as Treasurer and President, respectively, of Eaton Vance Municipal Income 2028 Term Trust
(the “Trust”), that:
| |
(a) |
The Semiannual Report of the Trust on Form N-CSR for the period ended
July 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| |
(b) |
The information contained in the Report fairly presents, in all material respects, the financial condition and
the results of operations of the Trust for such period. |
A signed original of this written statement required by section 906
has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
|
| Eaton Vance Municipal Income 2028 Term Trust |
| Date: September 25, 2023
|
| /s/ James F. Kirchner |
| James F. Kirchner |
| Treasurer |
| Date: September 25, 2023
|
| /s/ Eric A. Stein |
| Eric A. Stein |
| President |
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